Description

SEBI issues notice of attachment of bank and demat accounts against Babulal Ramanlal Shah HUF under recovery proceedings RC No. 8958 of 2025 in matter of dealing in illiquid stock options at BSE.

Summary

SEBI has issued a Notice of Attachment dated December 19, 2025 under Recovery Certificate (RC) No. 8958 of 2025 against Babulal Ramanlal Shah HUF (Hindu Undivided Family). The notice relates to recovery proceedings in connection with dealings in illiquid stock options at the Bombay Stock Exchange (BSE). This attachment order freezes specified bank accounts and demat accounts of the entity to facilitate recovery of amounts due to SEBI.

Key Points

  • Notice of Attachment issued under RC No. 8958 of 2025
  • Entity: Babulal Ramanlal Shah HUF
  • Matter: Dealing in Illiquid Stock Options at BSE
  • Action: Attachment of bank accounts and demat accounts
  • Date of Notice: December 19, 2025
  • Enforcement action under SEBI recovery proceedings

Regulatory Changes

No new regulatory changes. This is an enforcement action under existing SEBI recovery and attachment powers.

Compliance Requirements

  • The attached bank and demat accounts are frozen and cannot be operated by the account holder
  • Banks and depository participants holding the attached accounts must comply with the attachment order
  • No transactions, withdrawals, or transfers permitted from attached accounts without SEBI approval
  • Entity must cooperate with recovery proceedings

Important Dates

  • December 19, 2025: Date of Notice of Attachment
  • Attachment remains in effect until recovery is completed or order is modified/vacated

Impact Assessment

Direct Impact:

  • Babulal Ramanlal Shah HUF faces complete freeze of specified bank and demat accounts
  • Significant restriction on financial operations and liquidity
  • Recovery proceedings indicate potential financial liability

Market Impact:

  • Demonstrates SEBI’s active enforcement against illiquid stock options manipulation
  • Sends deterrent message to market participants engaging in illiquid options trading schemes
  • Reinforces regulatory scrutiny on suspicious trading patterns in low-liquidity derivatives

Regulatory Significance:

  • Part of SEBI’s ongoing crackdown on market manipulation through illiquid stock options
  • Highlights use of attachment powers for effective recovery in enforcement cases
  • Indicates completion of adjudication/investigation phase leading to recovery stage

Impact Justification

Enforcement action involving attachment of bank and demat accounts indicates serious regulatory violation with direct financial impact on the entity involved in illiquid stock options trading.